State enterprises may soon be required to ask for approval from the government to offer land leases near railway lines for more than one year.
Deputy Prime Minister Kittiratt Na-Ranong, who recently chaired a meeting of the State Enterprise Policy Committee, said approval will be on a case-by-case basis.
Mr Kittiratt said the committee will table the proposal for cabinet approval soon.
However, it faces opposition from some ministers.
A source said the proposal would have an adverse effect on management of state-owned enterprises, particularly the State Railway of Thailand (SRT), which is allowed under present regulations to approve leases valued at less than 50 million baht.
Most recently, Transport Minister Chatchart Sithipan ordered the SRT to stop leasing areas alongside tracks.
They will be needed for the construction of high-speed and double-track railways as well as the expansion of the Airport Rail Link, he said.
He wants areas along some tracks to be free of buildings that could obstruct the construction.
By law, all buildings are required to be at least 15 metres away from rail tracks.
The SRT is considering increasing the minimum distance requirement to 40 metres.
The SRT owns 234,976 rai of land with an estimated value of 3 billion baht.
The government has drawn up a multibillion-baht plan to improve the nation's infrastructure in an effort to promote travel in the country and cut logistics costs.
About the author
- Writer: Chatrudee Theparat
Position: Business Reporter